A resolution commemorating the 95th anniversary of the enactment of the Tariff Act of 1930.
- Bill Number
- S.Res. 281
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2025-06-17: Referred to the Committee on Finance. (text: CR S3437-3438)
- Last Updated
- 2026-05-14T16:24:59Z
AI-Generated Summary
Purpose
This Senate resolution (S. Res. 281) commemorates the 95th anniversary of the Tariff Act of 1930, commonly known as the Smoot-Hawley Tariff Act. It serves as a moment of historical reflection on the act's role in worsening the Great Depression, while affirming the value of open, rules-based international trade policies to promote economic growth and avoid past mistakes.
Key Provisions
The resolution includes detailed historical context in its "Whereas" clauses and four main directives in its "Resolved" section:
- Historical Background: Describes the act's enactment on June 17, 1930, by President Hoover, which raised tariffs on imported goods to protect U.S. farmers and manufacturers from foreign competition. It highlights the act's characterization by the Senate Historical Office as one of the most catastrophic congressional actions.
- Economic Consequences: Notes how the tariffs led to retaliatory measures from trading partners like Canada and European countries, causing a sharp drop in global trade (up to 60% decline), U.S. exports (from $5.24 billion in 1929 to $1.67 billion in 1933), GDP (from $104.6 billion in 1929 to $57 billion in 1933), and a spike in unemployment (from 3.2% in 1929 to 23% in 1932). It also mentions anti-U.S. boycotts abroad and the erosion of the U.S. trade surplus.
- Policy Reversal: References the 1934 Reciprocal Tariff Act and subsequent laws that empowered the President to negotiate tariff reductions, leading to lower U.S. tariffs (from 19.8% average in 1933 to 6.9% by 1950) and the benefits of multilateral trade agreements.
- Senate Commitments:
- Observes the anniversary as a lesson on the dangers of protectionist policies (high tariffs to shield domestic industries).
- Views the act as a key factor in deepening the Great Depression.
- Affirms the benefits of rules-based trade, including lower costs for U.S. producers (farmers, manufacturers, construction firms), more affordable goods for consumers, stronger international ties, and access to a $3 trillion+ export market.
- Commits to policies that foster growth and prevent repeating historical errors.
Significant Changes to Existing Law
This is a non-binding resolution, so it introduces no changes to existing laws or statutes. It does not amend the Tariff Act of 1930 or any other legislation; instead, it expresses the Senate's views for commemorative and reflective purposes.
Potential Impacts
- On Government Agencies: Minimal direct impact, but it may influence trade policy discussions within agencies like the U.S. Trade Representative or Department of Commerce by reinforcing support for free trade agreements.
- On Citizens: Symbolic encouragement for policies that could lower consumer prices and support job growth in export-oriented sectors; no immediate effects on individuals.
- On International Relations: Reinforces U.S. commitment to cooperative trade, potentially strengthening diplomatic ties with trading partners by signaling aversion to protectionism, though it has no enforceable international obligations.
Main Stakeholders Affected
- U.S. Congress and Policymakers: Primarily the Senate (introduced by Senators Cantwell, Shaheen, and Welch; referred to the Committee on Finance), shaping future trade debates.
- Businesses and Industries: Farmers, manufacturers, and exporters who benefit from open markets; construction firms facing lower input costs.
- Consumers: U.S. households gaining from affordable imports and varied goods.
- International Trading Partners: Countries like Canada and EU nations, indirectly affected through signals on U.S. trade stance.
- Economists and Historians: Provides a platform for reflecting on economic policy lessons.
Notable Legal, Constitutional, or Political Implications
- Legal: As a simple resolution, it requires only a majority Senate vote and does not need House or presidential approval, limiting its enforceability. It underscores Congress's constitutional role in regulating commerce (Article I, Section 8) without invoking new authority.
- Constitutional: Highlights the balance between congressional trade powers and presidential negotiation authority established post-1930, promoting multilateralism over unilateral tariffs.
- Political: Represents a bipartisan critique of protectionism, potentially influencing debates on modern trade issues like tariffs or supply chain resilience. It avoids partisanship by focusing on historical facts, but could be cited in arguments against isolationist policies, emphasizing long-term economic benefits of global engagement.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Shaheen, Jeanne [D-NH], Sen. Welch, Peter [D-VT], Sen. Klobuchar, Amy [D-MN]
Recent Actions
- 2025-06-17: Referred to the Committee on Finance. (text: CR S3437-3438)
- 2025-06-17: Introduced in Senate
Bill Versions
- Commemorating the 95th anniversary of the enactment of the Tariff Act of 1930. — issued 2025-06-17 — PDF (4 pages)